UNITED STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
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ý Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
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For the quarterly period ended June 30, 2003 |
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OR |
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o Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
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For the transition period from to |
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Commission File Number: 0-24081 |
EVOLVING SYSTEMS, INC.
(Exact name of registrant as specified in its charter)
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Delaware |
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84-1010843 |
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(State or other jurisdiction of incorporation or organization) |
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(IRS Employer Identification No) |
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9777 Mount Pyramid Court, Englewood, Colorado |
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80112 |
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(Address of principal executive offices) |
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(Zip Code) |
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(303) 802-1000 |
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(Registrant’s telephone number) |
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes o No ý
As of August 4, 2003 there were 14,190,903 shares outstanding of Registrant’s Common Stock (par value $0.001 per share)
EVOLVING SYSTEMS, INC.
Quarterly
Report on Form 10-Q
June 30,
2003
Table of
Contents
EVOLVING
SYSTEMS, INC.
BALANCE SHEETS
(in thousands except share data)
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June 30, |
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December 31, |
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(unaudited) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
16,748 |
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$ |
8,601 |
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Contract receivables, net of allowance of $249 and $290 at June 30, 2003 and December 31, 2002, respectively |
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4,642 |
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12,727 |
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Unbilled work-in-progress |
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71 |
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129 |
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Prepaid and other current assets |
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969 |
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804 |
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Total current assets |
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22,430 |
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22,261 |
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Property and equipment, net |
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1,544 |
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2,004 |
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Restricted cash |
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500 |
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500 |
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Total assets |
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$ |
24,474 |
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$ |
24,765 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Current portion of long-term obligations |
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$ |
36 |
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$ |
34 |
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Accounts payable and accrued liabilities |
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3,078 |
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4,176 |
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Unearned revenue |
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10,072 |
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14,523 |
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Total current liabilities |
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13,186 |
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18,733 |
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Long-term obligations |
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194 |
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141 |
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Total liabilities |
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13,380 |
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18,874 |
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Commitments and contingencies (Note 9) |
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Stockholders’ equity: |
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Common stock, $0.001 par value; 25,000,000 shares authorized; 14,172,974 and 13,305,052 shares issued and outstanding as of June 30, 2003 and December 31, 2002, respectively. |
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14 |
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13 |
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Additional paid-in capital |
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54,484 |
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53,634 |
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Accumulated deficit |
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(43,404 |
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(47,756 |
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Total stockholders’ equity |
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11,094 |
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5,891 |
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Total liabilities and stockholders’ equity |
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$ |
24,474 |
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$ |
24,765 |
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The accompanying notes are an integral part of the financial statements.
1
EVOLVING
SYSTEMS, INC.
STATEMENTS OF OPERATIONS
(in thousands except per share data)
(unaudited)
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2003 |
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2002 |
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2003 |
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2002 |
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REVENUE |
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License fees and services (Note 1) |
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$ |
3,181 |
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$ |
1,956 |
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$ |
8,185 |
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$ |
3,885 |
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Customer support (Note 1) |
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3,258 |
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2,651 |
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6,845 |
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5,120 |
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Total revenue |
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6,439 |
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4,607 |
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15,030 |
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9,005 |
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COSTS OF REVENUE AND OPERATING EXPENSES |
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Cost of license fees and services, excluding depreciation and amortization (Note 1) |
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1,288 |
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1,175 |
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3,181 |
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3,305 |
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Cost of customer support, excluding depreciation and amortization (Note 1) |
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1,667 |
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3,228 |
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2,974 |
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6,864 |
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Sales and marketing |
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720 |
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1,400 |
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1,425 |
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3,283 |
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General and administrative |
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935 |
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1,495 |
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1,851 |
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3,447 |
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Product development |
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380 |
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191 |
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656 |
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745 |
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Depreciation and amortization |
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319 |
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486 |
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649 |
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1,008 |
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Restructuring and other expenses |
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(80 |
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4,040 |
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38 |
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4,681 |
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Total costs of revenue and operating expenses |
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5,229 |
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12,015 |
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10,774 |
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23,333 |
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Income (loss) from operations |
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1,210 |
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(7,408 |
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4,256 |
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(14,328 |
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Other income, net |
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49 |
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38 |
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96 |
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51 |
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Net income (loss) |
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$ |
1,259 |
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$ |
(7,370 |
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$ |
4,352 |
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$ |
(14,277 |
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Basic earnings (loss) per common share |
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$ |
0.09 |
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$ |
(0.55 |
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